APR wants to sell power generating units to PLN

American Power Rent (APR) has offered state-owned electricity firm PT PLN to buy two generating units, each with a capacity of 2x10 MW, in Nias currently leased by the latter from the former for a combined price of US$11.5 million.

Senior Public Relations Manager of PLN, Agung Murdifi said that the company is currently waiting for the engine specifications from APR.

Agung added that PLN has offered APR to extend the lease contract of the two generating units in Idanoi and Moawo, Nias, until December of 2016, but APR wants to only extend the contract, which is set to expire June 11, for two months.

He added that PLN plans to pay the rent of the two generating units in Nias, and has sent a letter to APR. He said that for the units in Medan, North Sumatra, PLN will pay 50 percent of the total billing, while the remainder to be paid pending completion of external audit process.

PLN is planning to add three new generating units with combined capacity of 24 MW in Nias to help meet growing demand. Nias recently suffered blackouts after APR suspended power supply amid problems related with the payment of leasing fees in Medan.

Editing by Reiner Simanjuntak